- More than $82 million was cut from asking prices in Q2 2025, nearly $20 million more than in Q1
- National average reduction per listing was $40,310
- Steepest single price cut was $750,000 on an Auckland lifestyle property.
Vendors across New Zealand collectively reduced their asking prices by $82 million in the second quarter of 2025, according to new data from realestate.co.nz. This was almost $20 million more than the $63 million in price reduction during the first quarter, but well below the $108 million trimmed from asking prices in the same period last year.
In Q2 2025, 2,040 properties listed on realestate.co.nz recorded a price drop, a 21.0% increase on Q1 2025 (1,686).
Vanessa Williams, spokesperson for realestate.co.nz, says the $80 million cut from property prices in Q2 suggests vendors are having to make bigger adjustments to meet market expectations.
“In Q2, we saw both the number of properties with price drops and the size of those reductions increase compared to the start of the year. While cuts aren’t as steep as they were in 2024, sellers are clearly making bigger moves to meet buyers and get deals across the line. This tells us buyers are in a strong position and many vendors are more willing to negotiate to secure a sale.”
The data compares the difference between a property’s initial asking price when listed on realestate.co.nz and its price at the point of sale or withdrawal. Although this isn’t the same as the final sale price, it does provide a clear signal of how much sellers have adjusted their expectations to meet buyer interest.
Premium markets lead price drops per listing
Nationally, there was an average of $40,310 trimmed from the 2,040 listed properties which reported a price drop in Q2.
The region with the largest total price drop was Auckland with $20,529,579, followed by Waikato with a total price drop of $9,443,509, and Wellington with $8,203,001. The regions with the lowest price drops in Q2 were: West Coast, $248,000; Gisborne, $270,000; and Wairarapa, $1,026,500.
The five largest single reductions were all in premium markets; the greatest of which was a property in Auckland, listed for $6,500,000 with a final asking price of $5,750,000, a price drop of $750,000. In Q1 2025,the largest price drop was also in Auckland. The property was originally listed for $4,899,500 and then reduced to $4,295,000 – a reduction of $604, 500.
“The biggest cuts are happening at the top end of the market, where a single adjustment can run into hundreds of thousands of dollars,” says Williams. “At the same time, many regional markets are seeing only modest reductions, showing just how varied price movement is across the country.”
Williams says although the market is stagnant, it doesn’t mean well-priced properties aren’t selling. If sellers meet buyers' price expectations, the market will move, she adds.
Buyers using realestate.co.nz to search for a property will be notified of any price reduction to their saved listings.
About realestate.co.nz
We’ve been helping people buy, sell, or rent property since 1996.
Established before Google, realestate.co.nz is New Zealand’s longest-standing property website and the official website of the real estate industry.
Dedicated only to property, our mission is to empower people with a property search tool they can use to find the life they want to live. With residential, lifestyle, rural and commercial property listings, realestate.co.nz is the place to start for those looking to buy or sell property.
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Energy Sector – From Iceland to China – what New Zealand can learn about energy
Source: BusinessNZ
Property Market – New Zealand resale profits fall to lowest proportion in more than a decade – Cotality
New Zealand property owners are realising the lowest rate of resale profits in more than 10 years, as subdued values and elevated stock levels continue to give buyers the upper hand.
Cotality NZ’s latest Pain & Gain Report shows 89.4% of properties resold for more than their original purchase price in the June 2025 quarter, down from 90.7% in the March quarter and the lowest rate since mid-2014.
Hold periods a key factor
As a critical driver of resale outcomes, he said longer hold periods generally allow values to appreciate enough to smooth out any cyclical downturns.
Houses outperform apartments
“Recent tax changes, together with lower mortgage rates, have eased the pressure on landlords, and the data doesn’t point to any large-scale sell-off,” Mr Davidson said.
Main centres
“The flip side is that because the market has generally been more affordable, the resale gains tend to be smaller in dollar terms.”
Regional insights
Outlook
Energy Sector – Hot water heat pumps are next big thing – but need a push
Bold action is needed to accelerate New Zealand’s transition to cleaner, more energy-efficient homes and businesses, says energy efficiency expert Dr Chris Mardon.
“Two ways are subsidising hot water heat pumps through the Warmer Kiwi Homes initiative, and helping homeowners improve energy efficiency through a Ratings Assistance Scheme,’ says energy efficiency expert Dr Chris Mardon.
Both are recommended in an excellent report by the New Zealand Green Building Council.[1]
“These initiatives would expand the use of hot water heat pumps across the country, modernise heating systems, reducing carbon emissions, and lower energy bills for Kiwi households.
“Hot water heat pumps are among the most efficient technologies available for residential and commercial water heating. By using electricity to transfer heat rather than generate it directly, these systems can reduce energy use by up to 75% compared to traditional electric or gas water heaters.
“Many countries offer incentives to homeowners and landlords to install hot water heat pumps – but not in New Zealand.
“Consequently, hardly any New Zealand homes and businesses have hot water heat pumps, with most using less efficient electric elements or gas water heaters. Hot water heat pumps are more efficient but they’re also – currently – more expensive, so their installation needs to be encouraged.
“To make heat pumps and hot water heat pumps more accessible, subsidies should be offered to both homes and businesses—mirroring successful programmes in Canada, the US, Europe, and Victoria, Australia. These incentives could be delivered through the Warmer Kiwi Homes programme,” Mardon says.
“Another method is the proposed Ratepayer Assistance Scheme (RAS), which allows ratepayers to borrow money to install energy efficient appliances such as hot water heat pumps, with repayments made over time through rates bills. A RAS is under development but requires enabling legislation.
“Together, these measures would represent a transformative shift in how New Zealand heats its homes and buildings—ushering in a cleaner, more resilient energy future,” Mardon says.
Health and Education – Five times more Māori nurses needed to reflect population
Source: New Zealand Nurses Organisation
Investment Funds – Revealed: Huge increase in weapons in your KiwiSaver fund
Over $900 million of the savings of New Zealand investors is invested in weapons companies, including those supplying the conflict in Gaza:
- New research shows KiwiSaver Investment in weapons companies has surged by 40.9% to $392.4 million
- Managed fund investments also grew to reach $509.2 million by March 2025.
- $71.9 million of KiwiSaver and retail funds invested in weapons companies
- $179.9 million invested in two other non-weapons companies.
Annual survey data shows that 80% of Kiwis want to avoid investing in weapons
Comprehensive new analysis by charity Mindful Money reveals New Zealand KiwiSaver funds have dramatically increased their investment in weapons companies, with total weapons investments reaching $392.4 million – a staggering 40.9% increase from the previous year.
The research exposes how KiwiSaver providers are seeking short term profits from war. A contributor to the increase was a surge in sales of military weapons used in the bombardment of Gaza. New Zealand investment in the production of weapons used in Gaza, through KiwiSaver and retail investment funds, totalled $71.9 million a rise of 18.9% over the year to end March 2025.
The latest annual survey revealed that 80% of New Zealand investors want to avoid investing in weapons. But the surge in weapons investment by KiwiSaver and investment funds shows the growing misalignment with the values of KiwiSaver investors during some of the world's deadliest conflicts since World War II.
Barry Coates, Mindful Money Founder and CEO commented: “There has been a huge rise in weapons investment by New Zealanders. The chase for higher returns means that Kiwis’ hard-earned savings are being used to invest in companies whose weapons have resulted in the devastation of Gaza.”
Gaza Conflict Connections Raise Ethical Concerns
Few New Zealanders realise there is a direct connection between their savings and companies supplying weapons to the Gaza conflict. In addition to New Zealand's retail investment in weapons companies, there has been a major increase in New Zealand investment in non-weapons companies supporting operations in Gaza, such as Caterpillar and Amphenol. Investment in those two companies alone totalled $189 million, up 39% over the year to end March 2025.
Few KiwiSaver fund providers tell their customers that their hard-earned savings are being invested in companies complicit in a brutal conflict that has led to mass killing and starvation of Gaza’s people. So far the conflict has resulted in the deaths of 2,000 Israelis and 63,000 Palestinians according to official figures, although this does not include many others missing under rubble or those who have died from starvation.
Barry Coates said: “We can all see evidence of Palestinians being killed trying to get food for their starving children. The companies supporting the weapons, ammunition, bulldozers and technology need to be held to account for their actions. They should not be benefiting from our investment.”
Global Weapons Industry Boom Drives Investment Returns
The surge in New Zealand weapons investments reflects a broader global boom in the defence industry driven by multiple major conflicts. The S&P Aerospace & Defence Industry has seen extraordinary growth with a 16.5% increase in the past year alone and a staggering 307% growth over the past decade.
This growth has been accelerated by Russia's invasion of Ukraine on February 24, 2022, as well as internal conflicts within countries and regional tensions worldwide. Weapons companies have recorded higher short term profits, leading to huge investment increases from KiwiSaver and investment providers chasing higher returns.
The Values Gap: 80% Opposition vs Growing Investment
The findings reveal a stark disconnect between New Zealanders' stated values and where their retirement savings are actually invested. Research shows that 80% of New Zealanders want to avoid investing in weapons companies through their KiwiSaver or investment funds. Yet investments in this sector continue to surge.
This gap highlights a fundamental challenge in the KiwiSaver system. Many New Zealanders may be unknowingly funding companies involved in conflicts, through their retirement savings, even though they personally oppose that use of their funds. Few if any KiwiSaver providers have asked their customers if they agree to more of their savings being used for investments linked to civilian deaths and human rights violations on a massive scale.
Barry Coates explained: “When Kiwis go online to see Mindful Money’s free disclosure of their investments, many are shocked to find they are invested in issues such as weapons. A typical reaction is “I didn’t sign up for this.” They can and should challenge their fund providers. Or, if they are not satisfied, they can use the Mindful Money website to find a fund that does not invest in weapons.”
Managed Funds Show Similar Patterns
The weapons investment surge isn't limited to KiwiSaver funds. The analysis reveals that managed fund investments in weapons grew to $509.2 million by March 2025. Firearms companies increased by 64%, while military weapons investments in managed funds grew by 24% over the previous year. This shows the trend toward increasing weapons investments spans across New Zealand's broader investment landscape.
Barry Coates pointed out: “Many Kiwis recognise that weapons are necessary for defence, but they don’t want their savings supporting weapons companies that indiscriminately sell their weapons to whoever will pay. All too often weapons from major NATO suppliers end up being used in conflicts where human rights are violated.”
Walmart Leads Firearms Investment Surge
KiwiSaver investment in companies producing and selling firearms has more than doubled, with a 110% increase. This is despite heightened awareness amongst the New Zealand public about the dangers of weapons proliferation in the wake of the Christchurch Mosque shootings.
The most dramatic individual company increase involves Walmart, where New Zealand KiwiSaver investment reached $115.8 million – representing a massive 144% increase over the year and 40% growth in just six months. While primarily a general merchandise retailer, Walmart sells shotguns, rifles, ammunition, and firearm components like scopes at stores across the United States.
Walmart has made progress in the wake of widespread concern over mass shootings in the US. They have raised the minimum age for firearm purchases to 21, stopped selling handguns and certain rifles like the AR-15, and no longer offer ammunition for military-style weapons. However, they continue to sell other weapons alongside food, clothing and hardware items.
Alternative Options Available
Despite the concerning tr
Education – Blind Ignorance: Ministry decision on At the Marae – QPEC
QPEC totally condemns the decision to sabotage At the Marae. In its explanation, the Ministry actually acknowledges “these words reflect everyday language used in classrooms and communities.”
Then in the same sentence, in an embarrassing display of pedagogical rigidity, the Ministry claims “the higher number [six words] presented decoding challenges within the phonics sequence used in the series.”
The evidence worldwide suggests the opposite.
From the 1960s onwards, projects like the Bilingual Education Project at the Ontario Institute of Education in Toronto have established quite categorically that young children have a natural ability to absorb several languages at the same time, without damage to other functioning like learning to read.
Indeed, acquiring more than one language leads to greater verbal ability in general.
In Aotearoa NZ, te reo Māori has the added advantage of a close fit between print and sound — closer than there is between English language print and sound.
So one irony of the Ministry decision is that censoring Māori words will actually limit both the development of reading abilities and the advantages of bilingualism.
And another is the ludicrous decision to delete Māori words from a book that focuses on the Marae, the central location of Māori culture.
We should bear in mind that the decision may have less to do with the Ministry and much to do with the prejudices of the Coalition Government.
As Waatea reports, Bruce Jepsen, president of Te Akatea, the Māori Principals’ Association, says the decision not to reprint “At the Marae” was racist and white supremacist. We agree.
Federated Farmers – Carbon forestry rules still wide open
Source: Federated Farmers
Tech and Security – Three-Quarters of New Zealand Government Organisations Yet to Meet Strictest Cybersecurity Standards Ahead of Security Mandate – Research
The new analysis by Proofpoint of DMARC adoption reveals that three quarters (75%) of New Zealand Government organisations have not implemented the recommended and strictest level of DMARC protection – reject – which prevents cyber criminals from spoofing organisations' identities and reduces the risk of email fraud. DMARC has three levels of protection – monitor, quarantine and reject – with reject being the most secure for preventing illegitimate emails from reaching the inbox.
- 25.5% of New Zealand Government entities have implemented the highest DMARC protection level: Reject.
- 12% have a Quarantine policy, meaning suspicious emails are sent to a spam folder.
- 54% have a Monitor policy, which only tracks DMARC activity without blocking or quarantining emails.
- 8.5% have no DMARC record at all.
Best Practices for Enhanced Email Security:
- Check the validity of all email communication and be cautious of potentially fraudulent emails impersonating colleagues, suppliers, and stakeholders.
- Be cautious of any communication attempts that request log-in credentials or threaten to suspend service or an account if a link isn't clicked.
- Adopt phishing-resistant multifactor authentication, such as passkeys.
